Secured Loan Advise ...

[furreal]

Hi,

 

Just writing this on behalf of my parents whom took out a secured loan for £8400 with swift (+£1176 PPI) ... the term was over 84 months (7 years) which was reached July 2010, however having a rough 'count' so far it would seem as if they have already paid just over £17,000 to swift and counting.

 

On 19th October they recieved a letter stating 'the current balance is £7,236.86' and arrears of £327.00 ... I'm struggling to see how a £8k loan ... that's had over £17k ploughed into it still has a balance of £7k ... What's more, the PPI was only for 60 months, yet the loan was 84 months, does this sound right? ,,,

 

My parents have asked for information relating to exactly how much has been paid, charges etc but have yet to have a reply to any of the emails or letters sent in ... the only thing I can say is the letters where made by my parents and not a template letter, but ive decided to stwep in now and help where I can.

 

Can anyone advise the best way to proceed? my parents cannot pay this AND the mortgage each month and keep going around in circles.

 

Thanks in advance

Mike

[42man]

Welcome to the CAG forums Mike, I think you need to send off for a full SAR in the first instance. I presume your parents received this loan through a broker, and apart from the brokers fee your parents paid, it is likely that there is also an undisclosed fee (which won't be on your agreement) which Swift also paid to the broker !! There sounds like there is a significant amount of excessive fees on the account too. As for the PPI, were your parents told that in order to obtain the loan they would have to have PPI ? was there any kinds of means and needs statment taken from them with regards to any other insurances / policies they also had at the time ?....

[arabellau]

Am new to this site, and can see how helpful it would be, but is there any recommendation for a lender who will give credit to someone with bad history?

[Killerschick]

Am new to this site, and can see how helpful it would be, but is there any recommendation for a lender who will give credit to someone with bad history?

 

Hi Arabellau,

 

If you take the time to read this and other threads relating to lenders who offer credit to people with bad credit histories I think you will find the answer is no.

 

There may still be lenders out there who offer this sort of credit, (I assume you're looking for a secured loan as you've posted on this thread) but you won't find anyone recommending them. Quite the reverse, anyone who has had dealings with these lenders and the brokers who pass business to them will tell you to steer well clear. Even consumer bodies such as Which? have said that secured loans are best avoided.

 

If you're experiencing financial difficulties then it may be more sensible to sort out your existing debts and arrange affordable repayments rather than borrow more money. For advice on this you could try the Consumer Credit Counselling Service or CCCS who are a debt advice charity but I wouldn't recommend going to a fee charging debt adviser.

 

Good luck

[intheblack]

i am dealing with a secured loan that is 1000 per month on top of my mortgage over 4 years i have

paid 48000 - when i asked for a redemption figure they said 87,000. I borrowed 70,000 so how does all

this work? It has broken up my family the pressure of meeting this every month. it is repayment and

when i asked for an interest only period of payment they flatly refused.

 

i finally got the gumption to request a SAR. On March 8 2011 I requested the original loan agreement

and other things which have not come. I beleive they are in breach of the Consumer Credit Act and that

I can now go to FOS about it and unfair relationship test.

 

I get in a dither with these things and would appreciate a cool headed mentor to account to re this

forum to get me through this,

 

Whenever I deal with a creditor I have behaved like a fumble fingers and I really want to deal with

this crisply and cleanly. Thank you. The company is Prestige - How can I get them to reveal the

broker fee and undisclosed fee. I was not in my right mind when I took the loan - a young man

kept telling me to call him on his private phone and to use his accountant at the company Positive

Lending he was working at. He stung me for another shark loan but I beleive he was working without

CCL Consumer Credit License - where does that leave me? thanks